Wienerberger Ag · VIE:WIE
Wienerberger — FY2022 Earnings Presentation
50 slides from Wienerberger's earnings presentation, 2023
Slide 1: Results FY 2022
wienerberger RESULTS FY 2022
Slide 2: Disclaimer: Cautionary Note Regarding Forward-Looking Statements
DISCLAIMER CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS › The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctne
Slide 3: Agenda
AGENDA › RECAP 2022 › Q4 & FY 2022 FINANCIALS › ACQUISITION OF TERREAL › OUTLOOK 2023 › ANNEX 3
Slide 4: Significant ESG achievements in our 2021-2023 ESG program
FY 2022 – ESG ACHIEVEMENTS 2021-2022 WHILE OTHERS TALK, WE DO: SIGNIFICANT ESG ACHIEVEMENTS IN OUR 2021-2023 ESG PROGRAM DECARBONIZATION CIRCULAR ECONOMY BIODIVERSITY Target until 2023: Target until 2023: Target until 2023: -15% CO2 100% of Biodiversity programs / measures new products recyclable fo
Slide 5: Reduction of energy consumption through operational excellence
DECARBONIZATION MEASURES REDUCTION OF ENERGY CONSUMPTION THROUGH OPERATIONAL EXCELLENCE HIGH EFFICIENCY KILN & GREEN ELECTRICITY Producing clay blocks & roof tiles with nearly zero carbon footprint › Austria & United Kingdom Energy efficiency HEAT PUMP SYSTEM improvements in Recovery of energy from
Slide 6: Energy transition: application of alternative forms of energy
DECARBONIZATION MEASURES ENERGY TRANSITION: APPLICATION OF ALTERNATIVE FORMS OF ENERGY ELECTRIFICATION Testing proven electrification technology for various plants and product groups › Austria: clay blocks › Germany & the Netherlands: roof tiles Continuous & SYNGAS & BIOCHAR successful tests Testing
Slide 7: Wienerberger is well prepared to face upcoming ETS review
EMISSIONS TRADING SYSTEM (ETS) WIENERBERGER IS WELL PREPARED TO FACE UPCOMING ETS REVIEW IMPLEMENTATION CHANGES IN ETS WIENERBERGER RESPONSE PROCUREMENT › STRATEGY Availability of CO2 certificates will significantly decrease › Established ETS Strategy Task Force to proactively prepare for upcoming c
Slide 8: A highly successful year: record results in 2022
FY 2022 A HIGHLY SUCCESSFUL YEAR MACRO wienerberger ENVIRONMENT Record › Adjustment of our cost structure to the results softening markets in 2022 › Geopolitical instability › Pro-active pricing covers cost inflation › Highest cost inflation of last decades for › Availability of energy ensured throu
Slide 9: Excellent financials reflecting strong business performance
FY 2022 EXCELLENT FINANCIALS REFLECTING STRONG BUSINESS PERFORMANCE Revenues Operating EBITDA Operating EBITDA margin € 4,977 mn € 1,021 mn 20.5% (2021: € 3,971 mn | +25%) (2021: € 694 mn | +47%) (2021: 17.5% | +303bp) Net result ROCE Cash conversion € 568 mn 18.1% 86.9% (2021: € 311 mn | +83%) (202
Slide 10: Strong organic growth despite softening markets
FY 2022 STRONG ORGANIC GROWTH DESPITE SOFTENING MARKETS 1200 110% 1,026 ❯ 105% 1000 Wienerberger market level reflecting our end market 100% 100% exposure in newbuild, renovation & infrastructure 96% 800 2021 Market level (in %) 93% 694 95% EBITDA (in € mn) 91% 610 ❯ Strongest markets in 2021 reflec
Slide 11: Keeping cost inflation under control thanks to procurement strategy
FY 2022 – COST MANAGEMENT KEEPING COST INFLATION UNDER CONTROL THANKS TO FORWARD-LOOKING PROCUREMENT STRATGY › Firmly established, excellent procurement Excellent cost management PROCUREMENT organization at Group level driven by STRATEGY › Forward looking procurement strategy forward looking procure
Slide 12: Organic growth through innovation & system solutions
GROWTH STRATEGY – INNOVATION ORGANIC GROWTH THROUGH INNOVATION & SYSTEM SOLUTIONS Innovative products & system solutions TARGET VALUES › A combination of products / services that bring an intrinsic benefit to our customers (Convenience) and a Innovative System platform to further scale our business
Slide 13: Efficiency enhancement through self-help program
GROWTH STRATEGY – OPERATIONAL EXCELLENCE EFFICIENCY ENHANCEMENT THROUGH SELF-HELP PROGRAM Continuous improvement as part of EARNINGS ENHANCEMENTS Wienerberger’s DNA SELF-HELP CONTRIBUTION Innovation & organic growth ~50% Impact on revenues & cost of sales € 135 mn 245 45 Manufacturing excellence ~40
Slide 14: Successful continuation of acquisition strategy
GROWTH STRATEGY – M&A SUCCESSFUL CONTINUATION OF ACQUISITION STRATEGY FOCUSED ON GROWING THE RENOVATION & WATER MANAGEMENT SEGMENT PORTFOLIO M&A OPTIMIZATION Mix improvement within Tackling labor shortage through Expansion of Expanding scope of smart Continuous & disciplined inhouse piping solutions
Slide 15: Acquisition of Meridian Brick – a true success story
RECAP M&A 2021 ACQUISITION OF MERIDIAN BRICK – A TRUE SUCCESS STORY ❯ Successful turnaround in North America & creation of a new leader for masonry solutions ❯ Market entry in most important US brick markets Texas and Oklahoma ❯ Almost tripled our revenues in North America brick business ❯ Strong EB
Slide 16: Highly attractive payout for investors while maintaining financial discipline
FY 2022 HIGHLY ATTRACTIVE PAYOUT FOR INVESTORS WHILE MAINTAINING STRICT FINANCIAL DISCIPLINE SIGNIFICANT SHAREHOLDER DISCIPLINED BALANCE RETURN SHEET MANAGEMENT € 297 mn returned to investors in 2022 € 405 mn invested in 2022 › € 84 mn dividend payout › € 135 mn Maintenance Capex › € 213 mn through
Slide 17: Record 2022 earnings driven by exceptional overachievements
SUSTAINABLE EBITDA 2022 RECORD 2022 EARNINGS DRIVEN BY EXCEPTIONAL OVERACHIEVEMENTS Strong operating management generated € 110 mn EBITDA from exceptional overachievements in 2022 Raw material forward buying in US piping business ❯ Very favorable forward buying of raw material in the US piping busin
Slide 18: Enhanced resilience through diversified portfolio
WIENERBERGER TODAY ENHANCED RESILIENCE THROUGH DIVERSIFIED PORTFOLIO 2012 2022 Infrastructure 22% Infrastructure 15% Newbuild 49% Renovation 20% Newbuild 65% Renovation 29% € 2.4 bn revenues € 5.0 bn revenues We will continue to enlarge our exposure towards renovation & infrastructure 18
Slide 19: Strong growth track record thanks to resilient business model
WIENERBERGER TODAY STRONG GROWTH TRACK RECORD THANKS TO RESILIENT BUSINESS MODEL GROWTH TRACK RECORD 2012 - 2022 REVENUE GROWTH EBITDA GROWTH CAGR CAGR +8% +17% 4,977 1.021 2.356 217 2012 2022 2012 2022 19
Slide 20: Agenda
AGENDA › RECAP 2022 › Q4 & FY 2022 FINANCIALS › ACQUISITION OF TERREAL › OUTLOOK 2023 › ANNEX 20
Slide 21: Strong fourth quarter results
Q4 2022 STRONG FOURTH QUARTER RESULTS Revenue Operating EBITDA € 1,129 mn € 201 mn (Q4 2021: € 1,075 mn | +5%) (Q4 2021: € 182 mn | +10%) Net result Operating EBITDA margin € 81 mn 17.8% (Q4 2021: € 83 mn | -3%) (Q4 2021: 17.0% | +87bp) 21
Slide 22: Total revenues up +5%, organic growth of +3%
Q4 2022 TOTAL REVENUES UP +5%, ORGANIC GROWTH OF +3% 1,129 +3% organic 10 11 34 1,075 in € mn Revenues Organic FX Scope Revenues Q4 2021 Q4 2022 +5% Note: Rounding differences may arise from automatic processing of data 22
Slide 23: Total operating EBITDA up +10%, organic growth of +9%
Q4 2022 TOTAL OPERATING EBITDA UP +10%, ORGANIC GROWTH OF +9% +9% 201 organic 0 4 16 182 in € mn Operating EBITDA Organic 1) FX Scope Operating EBITDA Q4 2021 Q4 2022 +10% Note: Rounding differences may arise from automatic processing of data 1) Including self help initiatives of € 10 mn 23
Slide 24: Total revenues up +25%, strong organic growth of +15%
FY 2022 TOTAL REVENUES UP +25%, DRIVEN BY STRONG ORGANIC GROWTH OF +15% +15% 4,977 organic 401 20 584 3,971 in € mn Revenues Organic FX Scope Revenues FY 2021 FY 2022 +25% Note: Rounding differences may arise from automatic processing of data 24
Slide 25: Total operating EBITDA up +47%, organic growth of +34%
FY 2022 TOTAL OPERATING EBITDA UP +47%, DRIVEN BY STRONG ORGANIC GROWTH OF +34% +34% 1,021 organic 77 14 236 694 in € mn Operating EBITDA Organic 1) FX Scope Operating EBITDA FY 2021 FY 2022 +47% Note: Rounding differences may arise from automatic processing of data 1) Including self-help initiative
Slide 26: Substantial earnings growth and strong contribution from M&A
FY 2022 SUBSTANTIAL EARNINGS GROWTH AND STRONG CONTRIBUTION FROM VALUE-CREATING M&A EBITDA DEVELOPMENT Reported Operating +48% +47% EBITDA adjustments 1200 FY 2022 FY 2021 in € mn 1000 EBITDA reported 1,026.2 694.3 Sale of assets1) -19.4 -14.2 800 Structural adjustments2) 14.1 13.8 600 1.026 1.021 O
Slide 27: FY 2022 Income Statement
FY 2022 | INCOME STATEMENT DESPITE A CHALLENGING ENVIRONEMENT, WE SUCCESSFULLY SURPASSED THE EXCELLENT RESULTS OF THE PREVIOUS YEAR in € mn FY 2022 FY 2021 Chg. in % Revenues 4,976.7 3,971.3 +25 Operating EBITDA 1,020.9 693.9 +47 EBITDA 1,026.2 694.3 +48 Operating EBIT 739.6 431.2 +72 Impairment cha
Slide 28: Cash flow & balance sheet
FY 2022 | CASH FLOW & BALANCE SHEET TRANSFORMATION TO HIGHLY CASH GENERATING BUSINESS MODEL SUPPORTS STRONG BALANCE SHEET CASH FLOW BALANCE SHEET in € mn FY 2022 FY 2021 Chg. in % Free cash flow Net debt 1,079.3 1,134.5 -5 € 598 mn Net debt/EBITDA 1.1 1.6 - Working Capital 789.6 624.9 +26 (2021: € 4
Slide 29: Highly cash generating business model
FY 2022 | CASH FLOW STATEMENT WIENERBERGER WITH HIGHLY CASH GENERATING BUSINESS MODEL in € mn FY 2022 FY 2021 Chg. in % Gross cash flow 878.4 566.0 +55 Change in working capital -154.6 -55.5 <-100 Maintenance Capex -134.7 -120.4 -12 Divestments and other 72.2 80.2 -10 Lease payments -63.6 -49.8 -28
Slide 30: Agenda
AGENDA › RECAP 2022 › Q4 & FY 2022 FINANCIALS › ACQUISITION OF TERREAL › OUTLOOK 2023 › ANNEX 30
Slide 31: Joining forces
JOINING FORCES wienerberger to expand its roofing business in France, Germany, Italy & North America through the acquisition of roof & solar solutions provider Terreal 31
Slide 32: Transaction highlights
WIENERBERGER INTENDS TO ACQUIRE SIGNIFICANT PARTS OF THE TERREA GROUP TRANSACTION HIGHLIGHTS WIENERBERGER BUILDING EUROPE‘S FIRST TRUE PITCHED ROOF EXPERT ❯ Wienerberger intends to acquire a ❯ Scope of the transaction includes the significant part of Terreal Group, a businesses of Terreal in France,
Slide 33: Transaction details: value creation and financial considerations
VALUE CREATION AND FINANCIAL CONSIDERATIONS TRANSACTION DETAILS TRANSACTION FINANCIALS HIGHLY EBITDA ACCRETIVE TRANSACTION ❯ Enterprise Value € ~600 mn 1) WIENERBERGER LEVERS FOR ENHANCING EBITDA TO € 150 mn by 2026 ❯ Revenues 2022e € 740 mn 150 ❯ Operational Excellence 130 ❯ Run-rate EBITDA 2022e €
Slide 34: Transaction details: financing
VALUE CREATION AND FINANCIAL CONSIDERATIONS TRANSACTION DETAILS TRANSACTION FINANCIALS TRANSACTION FINANCING Upon closing, the transaction will be financed via a combination of: ❯ Enterprise Value € ~600 mn 1) ❯ Existing cash on balance sheet ❯ New debt facilities in line with Wienerberger financing
Slide 35: Expansion of renovation exposure to 34% of revenues
VALUE CREATION AND FINANCIAL CONSIDERATIONS SIGNIFICANT EXPANSION OF THE GROWING AND RESILIENT RENOVATION EXPOSURE TO 34% OF REVENUES WIENERBERGER 2022 WIENERBERGER + TERREAL 2022 Infrastructure Infrastructure 22% 20% New Build New Build Residential Residential 49% 46% Renovation Renovation 29% 34%
Slide 36: Agenda
AGENDA › RECAP 2022 › Q4 & FY 2022 FINANCIALS › ACQUISITION OF TERREAL › OUTLOOK 2023 › ANNEX 36
Slide 37: End market development 2023 – scenario
OUTLOOK 2023: END MARKETS END MARKET DEVELOPMENT 2023 – SCENARIO EUROPE NORTH AMERICA INSTABLE GLOBAL MARKET ENVIRONMENT › Ongoing military conflict in Ukraine › Instability on financial markets › Volatile energy markets NEW BUILD -15% -20% › Continuation of high cost inflation › Mortgage rates furt
Slide 38: Expected cost inflation of 10% in 2023
OUTLOOK 2023: COST INFLATION KEEPING COSTS WELL UNDER CONTROL THANKS TO FORWARD-LOOKING PROCUREMENT STRATEGY: EXPECTED COST INFLATION OF 10% IN 2023 FORWARD-LOOKING PROCUREMENT STRATEGY FOR RAW MATERIALS & ENERGY Plastics Raw Materials Ceramics Energy Personnel Shortage of availability not Supply di
Slide 39: Continuation of energy forward buying strategy
OUTLOOK 2023: ENERGY FORWARD BUYING POLICY CONTINUATION OF ENERGY FORWARD BUYING STRATEGY WIENERBERGER GAS VOLUMES ENSURED FOR 2023-2026 ENERGY STRATEGY as of 31 December 2022 93% 87% Our policy is to buy gas and electricity volumes forward based on our production 65% planning on a continuous basis
Slide 40: Driving organic growth through innovation, system solutions and self-help
OUTLOOK 2023: ORGANIC GROWTH DRIVING ORGANIC GROWTH THROUGH ONGOING FOCUS ON INNOVATION, SYSTEM SOLUTIONS AND SELF-HELP Innovation & system solutions Self-help program to be continued after 2023 INNOVATIVE SYSTEM PRODUCTS SOLUTIONS Retain share Increase share of to ⅓ ¼ of of total revenue total reve
Slide 41: Disciplined capital allocation
CAPITAL ALLOCATION DISCIPLINED CAPITAL ALLOCATION Mandatory investments Discretionary investments MAINTENANCE GROWTH & ESG M&A DIVIDENDS CAPEX CAPEX Innovation & system solutions Focus on closing the acquisition of Creating strong shareholder Commitment to Terreal return in form of attractive contin
Slide 42: Operating EBITDA of more than €800 mn in 2023 scenario
EBITDA 2023 BASED ON SCENARIO OF SOFTENING MARKETS IN 2023, WIENERBERGER SHALL ACHIEVE OPERATING EBITDA OF € >800 MN 1200 105% 100% ❯ Strongest markets in 2021 reflecting highest 1,020 1000 100% market level defined at 100% 96% 910 93% >800 95% ❯ In 2022 we reached the best result in Wienerberger’s
Slide 43: Wienerberger continues its sustainable growth path in 2023
OUTLOOK 2023 WIENERBERGER CONTINUES ITS SUSTAINABLE GROWTH PATH IN 2023 MARKET GROSS M&A OUTPERFORMANCE MARGIN Through our consistent focus on Existing cost management Significant contributions innovation & systems solutions, measures will from acquisition of we will continue to outperform protect g
Slide 44: Agenda
AGENDA › RECAP 2022 › Q4 & FY 2022 FINANCIALS › ACQUISITION OF TERREAL › OUTLOOK 2023 › ANNEX 44
Slide 45: Satisfactory performance in the fourth quarter of 2022
Q4 2022 SATISFACTORY PERFORMANCE IN THE FOURTH QUARTER OF 2022 External revenues (in € mn) Q4 2022 Q4 2021 Chg. in % Wienerberger Building Solutions 645.0 581.6 +11 In Q4 2022, we surpassed the excellent results of the Wienerberger Piping Solutions 275.8 285.4 -3 previous year, although the challeng
Slide 46: Wienerberger Building Solutions
FY 2022 | WIENERBERGER BUILDING SOLUTIONS SURPASSING 2021 RESULTS, DESPITE INCREASINGLY CHALLENGING MARKET ENVIRONMENT › System solutions for the entire building envelope Wienerberger › Stable market environment in the › Clay blocks & facing bricks, roof tiles, concrete Building renovation segment,
Slide 47: Wienerberger Piping Solutions
FY 2022 | WIENERBERGER PIPING SOLUTIONS SATISFACTORY PERFORMANCE DESPITE CHALLENGING ECONOMIC CONDITIONS › Piping solutions for buildings and infrastructure Wienerberger › Results from the previous year › Pipelife plastic pipes & Steinzeug-Keramo Piping were surpassed despite ceramic pipes Solutions
Slide 48: North America
FY 2022 | NORTH AMERICA INCREASE IN EARNINGS DESPITE NOTABLE MARKET DOWNTURN IN THE SECOND HALF OF THE YEAR › Innovative products and system solutions North › Facing bricks, concrete & calcium silicate products, › New build market in the USA and America plastic pipes Canada decreased due to › Locate
Slide 49: Continuation of strong track record on ESG 2023 targets
FY 2022 – ESG ACHIEVEMENTS CONTINUATION OF STRONG TRACK RECORD ON OUR ESG 2023 TARGETS ENVIRONMENT SOCIAL GOVERNANCE Decarbonization Diversity Committed to highest national -15% CO2e1) emissions vs. 2020 >15% females in Senior Management [2022: 15%] and international governance [2022: -13.2%] >30% f
Slide 50: Contact
CONTACT Wienerberger AG Investor Relations Wienerbergerplatz 1, 1100 Wien wienerberger.com/de/investoren investor@wienerberger.com +43 1 60192 10221 FINANCIAL CALENDAR March 27, 2023 Publication of the 2022 Annual Report on the Wienerberger Website May 5, 2023 154th Annual General Meeting May 9/May